At ValueSignals, our primary concern has always been data quality. Members use our screener to make essential investment decisions, so our data and formulas must be as accurate as possible. To guarantee this, we have made significant investments over the years to improve our data processing engine's transparency so we can investigate potential data issues. We also added advanced rules-based intelligence to ensure that the screener doesn't get corrupted by data errors.
Today we moved to production our next-gen data processing engine built on an industrial-strength platform...[more]
We started our newsletter almost 10 years ago to demonstrate that our screener is a great tool to beat the market. We have rigorously implemented a selected strategy and the results exceeded all our expectations.
Over the past 9.5 years we managed to beat the STOXX600 in 8 years...[more]
A high gross profitability ratio is evidence that a company has sustainable competitive advantage. According to Robert Novy-Marx, controlling for profitability dramatically increases the performance of value strategies, especially amongst the largest, most liquid stocks.
It's important however that when you use this ratio to compare companies, you look at companies operating in the same industry, industry group or sector. On top of that, it's important that you calculate the medians based on a specific stock universe, selecting for instance only companies active in a specific country.
In order to give you these unique new insights, we added the gross profitability ratio to our scorecard...[more]
A question we get asked quite often is: do you have a point-in-time database and do you allow backtesting? The short answer is, no. We don't support this functionality, and there's very good reasons why.
First of all, backtesting is complicated and requires a very high quality point-in-time database and sufficient expertise and time to analyse the results correctly. Whilst our database is of the highest quality and allows you to recreate screens based on the latest available data, it can never produce the same level of quality for historic data. The reason for this is that even high quality data vendors make quite a few mistakes in their quarterly income statement or balance sheet updated...[more]